WSU wants to boost social entrepreneurship

Sunday

Sep 1, 2013 at 6:00 AM

By Peter S. Cohan, WALL & MAIN

For several decades, it's been increasingly popular to blame government for our problems. However, without government, there are plenty of things — such as policing, firefighting and filling in potholes — that would never get done, because doing those things does not generate a profit for shareholders.

Thanks to the popular pressure to cut government, some of those unprofitable jobs have not been getting done. And into that gap have arisen so-called social enterprises — organizations that do social good, such as fighting poverty — while sustaining themselves through the way they offer goods and services.

Worcester State University believes that Worcester needs more social entrepreneurship. Matthew Johnsen, an associate professor and chairman of the school's department of sociology, is director of WSU's Center for Social Innovation. In an Aug. 29 interview, he said, "This new Center for Social Innovation is part of a larger effort by the university under President Barry Maloney to become even more engaged with the city and its future."

Mr. Johnsen has been in Worcester for 13 years. "I came to Worcester to join the department of psychiatry at UMass Medical School, and seven years ago left for Worcester State. My research interests are new forms of social networks and understanding what makes communities work. The Center for Social Innovation is just getting started — our first meeting will be Sept. 1," explained Mr. Johnsen.

He described different kinds of social enterprises that I am guessing the Center for Social Innovation will teach its students.

As he explained, "I am intrigued by what I see as new forms of organization that are not-for-profit and not nonprofit. For example, there are sustainable social enterprises that pursue a social mission such as providing used clothing for the poor, instead of throwing it in the Dumpster. For example, Savers (Thrift Stores) sells clothing at a high enough price to continue operating without taking funds from charitable sources. Some of these social enterprises get started with capital from foundations, and they repay the capital with their profits so the foundations can invest in other enterprises."

Other models of social enterprise reinvest whatever profits they make into expanding the organization's scope. As Mr. Johnsen said, "Grameen Bank in Bangladesh was founded by Muhammad Yunus to make small loans to women. And when the women pay back the loans, Grameen makes more loans. Others have hybrid structures. For example, there is an eye surgery service in Bangladesh that charges very low prices to locals but higher prices to people who come in from outside Bangladesh. Those who pay higher prices subsidize the local patients."

The Center for Social Innovation was co-founded by Mr. Johnsen and Morsel of Clay President Jim Harrity, and it held its first faculty meeting on Aug. 30. Morsel of Clay, by the way, is a "nonprofit educational support organization dedicated to equality in our public education system."

As Mr. Johnsen said, "The center is interdisciplinary. Our first meeting invites faculty from different departments, including business, sociology, urban studies, nonprofit management and earth sciences. We will start by offering two courses: Social Entrepreneurship, and Community Leadership. We expect that to develop so there is a concentration available to students."

Mr. Johnsen has a long-term vision for the center.

"Worcester has specific challenges — it has great wealth and great poverty. It is in its 300th year and we want to make sure it is around for its 600th year," he said. "So we want to think about the long-term changes it can make so Worcester will be an even better place. We want to address issues like poverty and bring more economic vitality to the city."

Mr. Johnsen believes that social enterprise can help with those changes.

"The Net Impact survey (Net Impact is "a leading nonprofit that empowers a new generation to use their careers to drive transformational change in the workplace and the world") found that 72 percent of college students and 53 percent of workers want their jobs to make an important difference. These new types of organizations can deal with issues such as sustainability and energy while employing people productively. They will help people to do good while doing well."

Those in the Worcester community who are interested in participating in social enterprise can attend monthly events.

Mr. Johnsen explained, "The first Wednesday of every month starting in October we will be holding a Social Innovation Roundtable that is open to the public starting at 6 p.m. at Worcester State University, at May Street, Room 214. While we are currently working on the schedule, in the past these meetings have featured local social enterprises providing an overview of their organizations. People interested in attending these roundtables can contact me at (508) 929-8768."